1Directing the Legislative Budget and Finance Committee to
2examine the causal factors of home foreclosure in this
3Commonwealth and make recommendations on best practices for
4mitigating foreclosure.

5WHEREAS, Section 412-C of the Housing Finance Agency Law
6stipulates that the Pennsylvania Housing Finance Agency (PHFA)
7monitor foreclosure activity and trends in this Commonwealth by
8using data and information accumulated from notices and
9applications for emergency mortgage assistance; and

10WHEREAS, In 2005, at the behest of PHFA and the Department of
11Banking, The Reinvestment Fund (TRF) completed a study of
12mortgage foreclosures in Pennsylvania; and

13WHEREAS, The study conducted by TRF revealed that a
14disproportionate number of foreclosed properties manifest a
15pattern of predatory lending; and

16WHEREAS, The study conducted by TRF concluded that although
17Pennsylvania's foreclosure rates had decreased by the fourth
18quarter of 2006, Pennsylvania's high percentage of seriously

1delinquent prime loans during the fourth quarter of 2006 was
2indicative that many foreclosures lie ahead in the immediate
3future; and

4WHEREAS, While the General Assembly has enacted laws, such as
5the Loan Interest and Protection Law (Usury Law) and Act 91 of
61983, in an effort to mitigate foreclosures, only a minority of
7homeowners are able to reap the benefits as set forth in those
8laws, resulting in the exclusion of the most vulnerable
9homeowners; therefore be it

10RESOLVED, That the House of Representatives direct the
11Legislative Budget and Finance Committee to conduct a study of
12foreclosures in this Commonwealth; and be it further

13RESOLVED, That the Legislative Budget and Finance Committee
14seek input from those groups most likely to make insightful
15contributions, such as representatives of banks, realty
16companies, county sheriffs, foreclosure mitigation programs,
17social services agencies, offices of unemployment compensation
18and academia; and be it further

19RESOLVED, That the Legislative Budget and Finance Committee
20include the following in its study:

21(1) Whether there has been an increase in home
22foreclosures since the 2006 study completed by The
23Reinvestment Fund.

24(2) The varying rates of foreclosure by county.

25(3) Whether a specific demographic is impacted more
26severely by foreclosure.

27(4) The correlation between rising unemployment rates
28and foreclosure.

29(5) The extent to which current Pennsylvania law
30effectively mitigates foreclosure.

1(6) Recommendations as to legislation that will refine
2the criteria by which mortgagors are considered and approved
3for prime and subprime loans;

4and be it further

5RESOLVED, That the Legislative Budget and Finance Committee
6hold public hearings as necessary to receive testimony about any
7of the subjects enumerated in this resolution; and be it further

8RESOLVED, That the Legislative Budget and Finance Committee
9report its findings and recommendations to the House of
10Representatives no later than November 30, 2013.